Section 12
Requirements on minimum capital funds or surplus of assets over liabilities
of Financial Services Act 2013
(1)
No person shall be granted a licence under section 10
or an approval under section 11 if—
(a)
in the case of a company, its capital funds; or
(b)
in the case of a branch established in Malaysia by a foreign institution, its surplus of assets over liabilities, is less than the minimum amount as may be prescribed by the Minister in the case of a licensed person, or the Bank in the case of an approved person.
(2)
Every authorized person shall, in carrying on its authorized business, maintain at all times such minimum amount applicable to it.
(3)
Notwithstanding subsections (1) and (2), the Minister may grant a licence under section 10 to a person subject to the condition that the
56 Laws of Malaysia person meets the minimum amount in the manner and within the period which are specified by the Bank with the approval of the Minister.
(4)
For the purposes of this section, “capital funds” means paid-up capital and any reserves as may be specified by the Bank.
(5)
Any authorized person who contravenes subsection (2) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.